Last year, as Bitcoin and cryptocurrencies soared and traders and investors piled up, interest in the digital asset sector skyrocketed.
Bitcoin prices have been trading at just under $ 60,000 from less than $ 20,000 this time last year, and bullish investors predict that Bitcoin prices and some small cryptocurrencies will continue to rise. increase.
Prior to the latest price surge (which pushes the Bitcoin and crypto markets from a low of $ 150 billion in 2020 to about $ 3 trillion), Germany’s new Prime Minister Olav Schortz is developing a “tulip” style in the crypto market. Warned about the bubble and added a “currency monopoly” “must stay in the hands of the state”.
Sign up for free now CryptoCodex— Daily newsletter for anyone interested in cryptocurrencies.Helps you understand the world of Bitcoin and crypto on weekdays
“I would doubt [bitcoin and cryptocurrencies have] Prospects as a currency model. ” Reuters Translated into English by Google. “It’s a high risk of tulip swelling,” Scholz added, referring to the famous speculative tulip foam that began in Amsterdam in the 17th century.
Expected to lead the effort to move Germany to a green economy, Schortz also warned of an energy-intensive way to maintain a decentralized Bitcoin network.
According to the University of Cambridge’s Bitcoin Power Consumption Index, the Bitcoin network is thought to consume about 200 terawatt-hours of electricity annually, comparable to Thailand’s electricity consumption. Earlier this month, Swedish authorities called on the European Union to ban the creation of energy-intensive Bitcoin and cryptography and the maintenance of networks. This is a process called mining.
Recently, Scholz criticized Facebook’s plan to launch a Bitcoin-inspired cryptocurrency and called the changes made by social networks to address regulatory concerns as “cosmetics.”
“I don’t support private sector digital currencies. I have to do everything I can to get the monopoly of the currency into the hands of the state,” he continues. rice field.
CryptoCodex— Free daily newsletter for anyone interested in cryptocurrencies
Other world leaders have also warned of increasing use of Bitcoin and cryptocurrencies.
Former U.S. President Hillary Clinton, who hopefully served as Secretary of State under President Barack Obama last week, said the rise in bitcoins and cryptocurrencies could undermine the status of the US dollar’s reserve currency. rice field.
“What appears to be a very interesting and somewhat exotic effort to literally mine and trade new coins weakens the currency, weakens the dollar’s role as a reserve currency, destabilizes the country, and You could probably start in a small country, but it will be much larger. ” Bloomberg A new economic forum in Singapore, and she added, “it is the rise of cryptocurrencies that nation-states begin to pay more attention to.”